A Quick Guide to Amazon FBA Canada
Recently Amazon announced some promotions to entice Amazon FBA sellers to start selling Canada as well. On the surface, it seems like it would be a huge pain in the ass to do, but really it is not so bad. However, there are a few things you will want to keep in mind.
Shipping is more expensive
This should go without saying, but shipping into Canada is more expensive than shipping down the road, or even across the US. Make sure you include an extra buffer for shipping into Canada.
Exchange rates are a thing
Lately, the USD to CAD exchange rate has been fairly stable and hovers between $1.30 and $1.35 per $1 USD (or $0.76 USD per $1.00 CAD). But that does not mean that cannot change. Either way, keep the exchange rate in mind when you are pricing your goods or it can quickly eat into your margins.
Tariffs or import duties
You will also need to be aware of import duties, and make sure that you prepay them. Amazon is not going to foot the bill for you, and you don’t want your items either rejected, or to cause problems with your Amazon account because of it. Generally speaking, duties seem to be around 5% of the value of the goods you are shipping.
Sales rank is not the same
Also keep in mind that just because something is a hot seller in the US does not mean it is a hot seller in Canada. And the sales ranks are different from site to site because Amazon Canada has a lot fewer items than Amazon US. For example, a toy ranked 50k in the US is in the top 1% of all toys on amazon.com; but a toy ranked 50k in Canada is closer to the top 10% on amazon.ca. Which would be similar to selling a toy ranked 325k on amazon.com; so not impossible, but not recommended either.
Packing it up (pun intended)
Selling on amazon.ca may seem like a daunting task, but once you get the process down it can be smooth sailing. Just keep some of the nuances in mind as you start your journey. And if you need to check ranks and potential, make sure you go over to our convenient amazon.com best sellers rank chart and amazon.ca best sellers rank chart to see how your item compares. If you are already selling in Canada, or are ready to get started, leave a comment below.
